The USD gained across the board after the FOMC announced the end of QE. This pulled the AUD/USD down and prevented it from building a price bottom. However, this price bottom scenario is not over, and today’s price action might actually add to it.
The AUD/USD fell after the FOMC announcement, but found support above the 0.8750 level, which represents some common support levels in the middle of October’s range. Price is rebounding from there thus maintaining a bullish bias as it crosses above a cluster of key SMAs. The RSI also shows bullish momentum maintained despite the sharp decline yesterday. Will it be able to hold above 0.8750 and push above 0.89 towards the next level of resistance around 0.90?
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